Risk managers have a unique competency to identify and analyse risks using advanced tools like scenario analysis, sensitivity analysis, decision trees and Monte-Carlo simulations. This toolset can significantly improve business decision making. And just like any other service or tool it needs to be marketed to the rest of the organisation.
Risk management needs to be seen as an internal service offering.
Risk managers need to make management aware and to promote its quantitative risk analysis and risk modelling services to the business. Risk managers should have a clearly documented value proposition for its services, including:
- Documented methodology;
- Estimation of time and company resources;
- Expected benefits;
- Reporting templates and examples.
A number of the risk managers we have interviewed commented on the fact that best results and most value is created when an executive approaches the risk manager to perform a specific risk calculation or model a particular set of scenarios. Risk managers need to make sure executives know what risk management team can offer the rest of the organization.
HERE IS A QUICK CHECKLIST TO TURN THIS SECTION INTO ACTIONS
| ☐ | Develop quantitative risk analysis and modelling competencies within the risk management team |
| ☐ | Promote risk management competencies within the organisation using internal meeting, bulletins and corporate website |
| ☐ | Provide quantitative risk analysis services to different business units within the organisation |
| ☐ | Offer quantitative risk analysis services to key contractors, suppliers and other counterparties |
USEFUL VIDEOS
| https://www.youtube.com/watch?v=qE0NItUkIGU |
Check out other decision making books
RISK-ACADEMY offers online courses
Informed Risk Taking
Learn 15 practical steps on integrating risk management into decision making, business processes, organizational culture and other activities!
ISO31000 Integrating Risk Management
Alex Sidorenko, known for his risk management blog http://www.riskacademy.blog, has created a 25-step program to integrate risk management into decision making, core business processes and the overall culture of the organization.
Advanced Risk Governance
This course gives guidance, motivation, critical information, and practical case studies to move beyond traditional risk governance, helping ensure risk management is not a stand-alone process but a change driver for business.
